Question 1

The _____ was established after the latest financial crisis,in response to a situation that caused many consumers to lose their homes.
A)Environmental Protection Agency
B)World Bank
C)Consumer Financial Protection Bureau
D)World Trade Organization
E)Sarbanes-Oxley Act

Accepted Answer

The Consumer Financial Protection Bureau (CFPB) was established in 2010 in response to the financial crisis of 2008, which had led many consumers to lose their homes due to risky lending practices. The CFPB's mission is to protect consumers from unfair, deceptive, or abusive practices in the financial industry, and to ensure that consumers have access to transparent and affordable financial products and services.

Question 2

Which of the following acts can be classified as procompetitive legislation?
A)Equal Pay Act of 1963
B)Civil Rights Act of 1964
C)Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
D)Sherman Antitrust Act of 1890
E)Occupational Safety and Health Act of 1970

Accepted Answer

The Sherman Antitrust Act of 1890 is procompetitive legislation as it aims to promote competition and prevent monopolies in the market. It prohibits businesses from engaging in anti-competitive practices such as price-fixing, collusion, and monopolization.

Question 3

The primary objective of U.S.antitrust laws is to
A)protect consumers from high prices and foreign products.
B)protect domestic businesses.
C)protect employees.
D)promote strategies that enhance business welfare over consumer welfare.
E)distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Accepted Answer

The primary objective of U.S. antitrust laws is to distinguish competitive strategies that enhance consumer welfare from those that reduce it. These laws are intended to promote competition in the markets and protect consumers from unfair business practices such as price-fixing, monopolies, and collusion among businesses. The ultimate goal is to promote fair competition and ensure that consumers have access to a range of quality goods and services at reasonable prices.

Question 4

Which of the following acts,passed in response to public outrage over conditions described in Upton Sinclair's The Jungle,was the first consumer protection legislation?
A)Civil Rights Act of 1964
B)Sherman Antitrust Act of 1890
C)Magnuson-Moss Warranty Act of 1974
D)Consumer Product Safety Act of 1972
E)Pure Food and Drug Act of 1906

Accepted Answer

The Pure Food and Drug Act of 1906 was passed in response to public outrage over conditions described in Upton Sinclair's The Jungle. It was the first consumer protection legislation that aimed to prohibit the manufacture, sale, or transportation or adulterated or misbranded foods, drugs, and liquors. This act empowered the federal government to set safety standards and regulate food and drug products.

Question 5

The ________________ desires to find a solution to a social problem rather than to simply earn profits.
A)CEO
B)ethics officer
C)social entrepreneur
D)cause-related marketer
E)Consumer Financial Protection Bureau

Accepted Answer

A social entrepreneur is someone who aims to find a solution to a social problem through entrepreneurial principles, rather than simply seeking profits.

Question 6

_____ focus(es)on developing sound organizational practices and integrity for financial and nonfinancial performance measures,rather than on an individual's morals.
A)The Dodd-Frank Wall Street Reform and Consumer Protection Act
B)Compliance
C)Organizational ethics
D)Core practices
E)The Sarbanes Oxley Act

Accepted Answer

The answer of _____ focus(es)on developing sound organizational practices and...

Question 7

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
A)Increases the accountability and transparency of financial institutions
B)Creates a bureau to educate consumers in financial literacy
C)Creates an organization to pay the bills of low-income consumers
D)Create incentives for whistle-blowers to come forward
E)Increases oversight of the financial industry

Accepted Answer

The Dodd-Frank Wall Street Reform and Consumer Protection Act does not create an organization to pay the bills of low-income consumers. This provision is not included in the Act.

Question 8

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
A)Because the large size creates economies of scale and they can charge lower prices
B)Because the selection in the stores is too large
C)Because large retailers attract crime to neighborhoods in which they are based
D)Because community leaders do not like the top management
E)Because large retailers almost never hire local workers as employees

Accepted Answer

Small businesses often struggle to compete with larger retailers due to their ability to take advantage of economies of scale, which allows them to offer lower prices. This poses a threat to small businesses who cannot compete on price and may struggle to attract customers.

Question 9

Which of the following acts exempted the insurance industry from antitrust legislation?
A)Equal Pay Act of 1963
B)Civil Rights Act of 1964
C)McCarran-Ferguson Act of 1944
D)Sherman Antitrust Act of 1890
E)Occupational Safety and Health Act of 1970

Accepted Answer

The McCarran-Ferguson Act of 1944 exempted the insurance industry from federal antitrust laws, allowing states to regulate insurance companies instead of federal government control.

Question 10

_____ law not only prohibits specific actions in business such as fraud,theft,or securities trading violations,but also imposes fines or imprisonment as punishment for breaking the law.
A)Civil
B)Criminal
C)Competitive
D)Administrative
E)Regulatory

Accepted Answer

Criminal law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law. Civil law deals with disputes between individuals or organizations, while administrative law governs the activities of government agencies. Competitive and regulatory laws are related to business practices but do not necessarily involve criminal penalties.

Question 11

Which of the following groups is not a group that receives special legal protections?
A)The elderly
B)Children
C)Senior citizens
D)The highly educated
E)Young consumers

Accepted Answer

The highly educated do not typically receive special legal protections in the same way that the other groups listed (the elderly, children, senior citizens, and young consumers) do.

Question 12

_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.
A)Social responsibility
B)Business ethics
C)Corporate philanthropy
D)Strategic philanthropy
E)Cause-related marketing

Accepted Answer

The definition provided in the question is most closely aligned with strategic philanthropy, which involves using a company's unique strengths and resources to make a positive impact on society while also achieving business objectives. Social responsibility refers more broadly to a company's obligation to consider the welfare of society in its operations, while business ethics relates to ethical decision-making and behavior within the organization. Corporate philanthropy and cause-related marketing are both tactics that can be employed as part of a strategic philanthropy approach.

Question 13

Which is not one of the four sources of criminal and civil laws?
A)Judicial law
B)Common law
C)Constitutional law
D)Administrative law
E)Statutory law

Accepted Answer

The four sources of criminal and civil laws are common law, constitutional law, administrative law, and statutory law. Judicial law is not a separate source of law but rather an interpretation of the existing sources by the courts.

Question 14

Which of the following is not an aspect of the institutionalization of social responsibility?
A)Voluntary practices
B)Legal responsibilities
C)Core practices
D)Familial responsibilities
E)Strategic philanthropy

Accepted Answer

Familial responsibilities are not part of the institutionalization of social responsibility. The other options (A, B, C, and E) are all aspects of the institutionalization of social responsibility. Voluntary practices refer to initiatives taken by companies beyond what is required by law, legal responsibilities refer to abiding by laws and regulations, core practices refer to embedding social responsibility into the core values and culture of the organization, and strategic philanthropy refers to the deliberate allocation of resources for social impact.

Question 15

_____ law defines the rights and duties of individuals and organizations (including businesses).
A)Civil
B)Criminal
C)Competitive
D)Administrative
E)Regulatory

Accepted Answer

Civil law deals with the legal relationships between individuals and organizations and defines their rights and duties. It includes matters such as contracts, property, torts, and family law. Criminal law, on the other hand, deals with offenses against the state, while competitive, administrative, and regulatory laws are specialized areas of law that govern specific aspects of business and government activities.

Question 16

The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."
A)Consumer Financial Protection Bureau
B)Federal Reserve
C)World Trade Organization
D)Department of Justice
E)Federal Trade Commission

Accepted Answer

The description best fits the Consumer Financial Protection Bureau (CFPB). The Federal Reserve is a broader entity that includes multiple agencies under it, but the CFPB specifically regulates consumer financial products and services. The World Trade Organization, Department of Justice, and Federal Trade Commission do not have a primary focus on consumer financial protection.

Question 17

The _____ regulates tobacco,dietary supplements,vaccines,veterinary drugs,medical devices,cosmetics,products that give off radiation,and biological products.
A)World Trade Organization
B)Consumer Financial Protection Agency
C)Department of Justice
D)Environmental Protection Agency
E)The Food and Drug Administration

Accepted Answer

The Food and Drug Administration (FDA) is responsible for regulating a wide range of products, including tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products. The other options listed do not have jurisdiction over all of these types of products.

Question 18

Which of the following is not a provision of the Sarbanes-Oxley Act?
A)Strengthens penalties for corporate fraud
B)Developed the Consumer Financial Protection Bureau
C)Requires codes of ethics for financial reporting in corporations
D)Makes fraudulent financial reporting a criminal offense
E)Requires greater transparency in financial reporting

Accepted Answer

The Consumer Financial Protection Bureau was actually created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, not the Sarbanes-Oxley Act. The other answer choices are all provisions of the Sarbanes-Oxley Act.

Question 19

The _____ was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression."
A)Equal Pay Act
B)Americans with Disabilities Act
C)Dodd-Frank Wall Street Reform and Consumer Protection Act
D)Age Discrimination in Employment Act
E)VII of the Civil Rights Act

Accepted Answer

The language describing "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression" refers to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The other options are not related to financial regulation.

Question 20

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
A)sustained price cuts.
B)free samples.
C)discriminatory pricing.
D)price collusion.
E)corporate espionage.

Accepted Answer

Sustained price cuts, discriminatory pricing, price collusion, and corporate espionage are all anticompetitive strategies that focus on weakening or destroying a competitor and are prohibited by antitrust laws. Free samples, on the other hand, are a common marketing strategy that can actually benefit consumers by allowing them to try a product before committing to a purchase.

Quiz 4: The Institutionalization of Business Ethics

The _____ was established after the latest financial crisis,in response to a situation that caused many consumers to lose their homes.

Which of the following acts can be classified as procompetitive legislation?

The primary objective of U.S.antitrust laws is to

Which of the following acts,passed in response to public outrage over conditions described in Upton Sinclair's The Jungle,was the first consumer protection legislation?

The ________________ desires to find a solution to a social problem rather than to simply earn profits.

_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures,rather than on an individual's morals.

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Which of the following acts exempted the insurance industry from antitrust legislation?

_____ law not only prohibits specific actions in business such as fraud,theft,or securities trading violations,but also imposes fines or imprisonment as punishment for breaking the law.

Which of the following groups is not a group that receives special legal protections?

_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

Which is not one of the four sources of criminal and civil laws?

Which of the following is not an aspect of the institutionalization of social responsibility?

_____ law defines the rights and duties of individuals and organizations (including businesses) .

The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."

The _____ regulates tobacco,dietary supplements,vaccines,veterinary drugs,medical devices,cosmetics,products that give off radiation,and biological products.

Which of the following is not a provision of the Sarbanes-Oxley Act?

The _____ was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression."

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except